Robinhood presents public stock application reaching profits in 2020: the company will reserve up to 35% of the shares for its users - The long wait is over. Robinhood goes public and this Thursday July 1 has registered its initial public offering, IPO for its acronym in English, in the Securities and Exchange Commission (SEC) of the United States —the American body that regulates the markets—.

The prospectus presented to the US administration is the first time that a technology giant that makes the stock market available to any user starts trading.

Robinhood allows amateur investors to access the markets with very low commissions, but it had not given the option for those same users to buy their shares until now.

The company led by Vlad Tenev will also reserve between 20% and 35% of this first offer for its customers, retail investors, who rarely have access to shares in an IPO.

Robinhood presents public stock application reaching profits

The initial public offering filed in the SEC does not give a predicted price per share or the total amount of shares it will put up for sale, but investors are already rubbing their hands.

The company had an estimated valuation at the end of 2020 of 9,870 million euros and is one of the great players in the technology sector. His actions, which will have the “HOOD” badge, were among the most anticipated of the year.

Robinhood's offer is supported as "insurers" or underwriters by big names in the financial sector. Goldman Sachs, JP Morgan, Barclays, Citigroup, Wells Fargo, Mizuho Securities and Santander are some of the banks involved in the operation.

Robinhood presents public stock application reaching profits

All of them will be left with a significant amount of stock that has not been revealed in this first briefing paper.

The company also did not give much more details on its blog, but the document has left some juicy details:

• Its revenue grew by 245% to $ 959 million in 2020, compared to $ 278 million in 2019.
• They posted a net profit of $ 7 million, in contrast to the loss of $ 107 million in 2019.
• During the first quarter of 2021, the company achieved total revenues of $ 522 million, 309% more than in 2020.

Robinhood has also managed to reach 18 million accounts at the end of the first quarter of 2021, as explained in the report published in the SEC.

Robinhood presents public stock application reaching profits

"In 2020, our cumulative network of accounts grew by 143% to 12.5 million and increased to 18 million on March 31, 2021," reads the report.

18 million users who will no doubt be interested in buying shares of the platform, if they can afford to pay for them.

Robinhood presents public stock application reaching profits

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Lesson learned: the debt of Spanish households and companies remains stable

Spanish families have been progressively shyly pulling credit so far this year, to mark in May its highest peak in 2021, although it remains at lower levels for almost 15 years, while companies have slightly reduced their debt.

In detail, the credit granted by financial institutions to families and non-profit institutions resident in Spain contracted 0.3% year-on-year in May and rose slightly (+0.1%) at a monthly level to add 1,031 million, to 694,617 million euros.

In this way, it marks its highest level so far this year and it is verified that Spaniards are resorting again to credit to meet their financing needs in the face of the crisis as they accumulate four consecutive months of moderate increases.

However, despite the Covid-19 crisis, the bank debt of Spanish households has been stabilizing in recent months slightly above 690,000 million euros due to the fall in interest rates, the progressive reduction of loans contracted and the lower cost of loans. In fact, the levels are similar to those set before the financial crisis, around 2006.

On the contrary, financing to companies increased by 0.5% year-on-year but decreased slightly, by 0.2%, compared to the previous month, to 928,795 million euros, accumulating two consecutive months down, according to data published this Thursday by the Bank of Spain.

The evolution of the need for financing of Spaniards reflects the impact of the Covid-19 crisis but also the containment of their indebtedness thanks to the maintenance of income by measures such as ERTE, while companies continue to need more credit from entities, and the figures show the impact of liquidity measures approved by the Executive, such as guarantees with guarantees from the ICO.

The slight increase in household credit is due to the increase in mortgage loans, which totaled 510,889 million euros in May, its highest level in the last year. Even so, mortgage credit still represents 73.5% of the total.

As for household credits for consumption, these increased by 1.9% year-on-year and rose by 0.5% per month, to 91,172 million euros.

This upward trend may be influenced by the increase in the savings rate, which reached peaks last year, and the dammed demand that could gradually be uncovered in the coming months.

On the other hand, the slight decline in financing to companies in the fifth month of the year was due to the fall in loans from credit institutions, as opposed to the upturn in external loans and debt securities.

Despite the occasional decline in May, the truth is that companies continue to need credit due to their increased financing needs as a result of the COVID-19 crisis.

Loans from banks subscribed to companies decreased by 2.8% year-on-year, and fell by 0.8% on a monthly basis, to 480,987 million, while debt securities rose by 12.5% year-on-year, to 133,326 million.

By the end of the fifth month of the year, foreign loans had grown 2.6% year-on-year and 0.2% compared to April, to 314,482 million.